Canadian CMBS investors are a very happy group; and no wonder – it can’t really get much better. Canadian CMBS has a pristine credit record, with only 0.087% of cumulative losses from market inception (1998), and a current delinquency rate (0.27%) that is lost in rounding. It pays on time – 98.1% (by dollar value) of all Canadian CMBS loans have repaid at or within 120 days of scheduled maturity. Furthermore, Canadian CMBS has been “stress tested” – Canadian CMBS investment grade bonds proved to be far more resilient to the 2008-2009 financial crisis, and recovered their value much more quickly than U.S. CMBS bonds and many other credit products. On top of everything else, the new issue Canadian AAA and A CMBS are currently trading at a discount to U.S. CMBS bonds (with up to an 18 to 34 bp pickup in spread to investors). For U.S. investors, or frankly any non-Canadian investor, who wishes to diversify their portfolios, new issue investment grade Canadian CMBS is truly the “low hanging fruit” in this market.